Beiner, Inc. - Page 27

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          unlike he, performed clerical, nonmanagerial work.  Petitioner’s            
          business would have suffered dramatically, if not ceased                    
          altogether, had Beiner disaffiliated himself from petitioner                
          during the subject years; any void created by his loss could not            
          have been filled by one or more other employees.  Moreover, as              
          noted by Wertlieb, employees such as Beiner are not paid on an              
          hourly basis but are paid for their leadership, knowledge, and              
          experience and for their ultimate accountability in achieving               
          company goals.  In this regard, Wertlieb noted, Beiner was the              
          locomotive of petitioner’s business, and, but for him, petitioner           
          would not have been able to obtain its inventory at the discount            
          prices that allowed it to function as profitably as it did.  In             
          fact, Wertlieb noted, the special relationships which Beiner                
          developed with the three OEMs allowed petitioner to report                  
          greater gross profit margins and returns on sales and investment            
          than virtually any other similar public company for which data              
          was available for 1999 and 2000.                                            
               Respondent concedes that Beiner played an “important” role             
          in petitioner’s business.  However, respondent asserts, Beiner’s            
          services were nonspecialized, Beiner spent little time in                   
          petitioner’s business, Beiner devoted a significant amount of his           
          time to working for California Controls, and Beiner’s brother was           
          a primary income-producing factor in petitioner’s business.                 








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